S&P cuts Euronext

S&P said it lowered its Euronext NV long- and short-term issuer credit ratings to A-/A-2 from A/A-1.

The rating agency also lowered its credit rating on the company’s senior unsecured bonds to A- from A.

The outlook is stable.

The downgrades were in response to the company being more likely to acquire a majority stake in Oslo Bors VPS after Nasdaq, the main competitor in the deal, withdrew its offer.

“We expect Euronext’s leverage to rise, as measured by increasing debt to EBITDA and falling funds from operations to debt, on the back of the announced acquisition and because of Euronext's ongoing growth strategy,” S&P said in a news release.

However, the rating agency expects the company will maintain its market position and successfully integrate the new exchange in the next two years.

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